Post
Topic
Board Bitcoin Discussion
Re: [Strategy of Dr.Bitcoin_Strange] BITCOIN'S SELL TO BUY MORE STRATEGY
by
franky1
on 15/01/2024, 01:23:41 UTC
its called "averaging down" or "shorting"

buy the dip and hold or buy low sell high="going long"
sell the high buy the correction="shorting"

From what I have observed so far, right from when I started my crypto journey, those terms are mostly used by short-term traders, most especially futures or derivatives traders. But I wish there were other terms that better befit the strategy I talked about since it's still a long-term investment and not just shorting or going long for a short-term profit. (Don't forget you will still have to buy and hold for some years.)

its known by many names depending on technique

to take a loan to then sell those shares and then buy back in when the price dips is leveraged/margin shorting
to just use coins/shares you already have is what some call "bed and breakfast" shorting (standard shorting, opposite of long)
to just buy more at lower price to add more accumulated coins but making average of whole hoard less is averaging down

there are many other names for other strategies. but when trade-fi influencers/institutions promote "shorting" they want to only promote the loaning process as they make money whether if the borrower loses or wins. they dont make money if they are not involved, so they dont promote shorting techniques that dont involve them (independent investor selling his own coin to rebuy at lower price)